Paris wheat futures closed flat on Monday after earlier touching their lowest level in more than a month as a hefty surplus curbed enthusiasm about a euro-fuelled upturn in exports. March milling wheat, the most active contract on the Euronext market, settled unchanged on the day at 181.75 euros a tonne.
The contract earlier touched its lowest since October 20 at 180.75 euros, before steadying near the close to hold above chart support at 180 euros. A recovery in US wheat prices, as Chicago futures came off a near three-month low for spot prices, offered late impetus to Euronext. Weakness in the euro, which slipped to a new seven-month low against the dollar, has lent support to European prices by stirring some export demand, but traders said fundamentals remained bearish.
"The supply balance remains heavy and exports are still pretty slow," one futures dealer said. "I think Matif (Euronext) is fairly priced between 180 and 183 euros." Over November, the Euronext's March contract posted a monthly loss of 2.4 percent. French port data on Monday showed a second vessel due to load in the coming days with wheat for Mexico, adding to a run of scheduled shipments that have also included the first wheat cargoes for Indonesia in years.
But traders say strong sales need to continue to whittle down French wheat stocks currently forecast to double this season, and to make up for sluggish European Union shipments so far this season. Euronext's rapeseed futures again showed bigger variations, with spot prices continuing to test chart resistance around a three-and-a-half month high set last week. Front-month February rapeseed settled up 3.50 euros, or 0.9 percent, at 384.00 euros a tonne to approach last week's high of 386.50 euros.
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